Just in the first two weeks of July, there have been 95 #TradeHalts on the #TSX..some are repeats... $LI
July 16, 2020
July 6, 2020
#MiningStocks Financings Coming Back to Life with #Gold at Multi Year Highs
Tags:
Gold
The @Oreninc Canadian Resource Financing Index increased in the week ending July 3rd, 2020 to 78.20 from an updated 61.41 a week ago as financings resurged.
Number of financings increased to 42, but there were only Two brokered financings announced this week for $35.9 million, a two-week low.
Only One bought-deal financing was announced this week for
Freeport-McMoRan’s Recent Strength Is Just the Start $FCX @FM_FCX
Tags:
Gold
At current copper prices around $2.70 a pound, Freeport-McMoRan is on track to generate nearly $6 billion in gross profit (EBITDA) over the next 12 months.
That level of profitability would produce annual earnings of about $1.10 a share, which would mean that the stock is trading for just 10 times earnings. That expectation assumes no additional rise in the prices of copper or gold.
But that's not my assumption.
I expect copper prices to continue trending higher toward $3 a pound and gold prices to top $2,000 an ounce on their way to $3,000.
At $3 copper and $2,000 gold, Freeport's annual EBITDA could approach $7.5 billion.
But that's not all…
The company's massive investments to increase production at its Grasberg mine in Indonesia are just starting to bear fruit. As a result, company-wide annual copper production should jump about 40% over the next two years to 4.2 billion pounds. At the same time, gold production should double to 1.8 million ounces.
Source: Chart by InvestorPlace
Those hefty production numbers could produce EBITDA well over $10 billion and earnings per share (EPS) in the range of $2.
Read The Whole Story On InvestorPlace Here: https://finance.yahoo.com/news/best-stocks-2020-freeport-mcmoran-175504848.html
Subscribe to:
Posts (Atom)
